Offer on house rejected

[NewGirl2023]

Hello. Been searching for a flat for 8 months now. First time buyer. Finally found a flat I like, good location and within my budget. Though max my budget, anything above I won’t be able to afford.

Home report price £200K. Right Move listed as offers over £190K. I put in my first offer of £197K. However rejected without counter offer. Been on the market for 10 days now. Estate agent said they are looking for close to asking home report price.

I’m happy to put in £200K but that will be my final offer, I won’t be able to top up as mortgage won’t cover. I just don’t understand why they didn’t counter offer. My issue here is what if I put in £200K offer and they reject again and just keep pushing it up and up especially when I’m the only one interested and offered. I’m flexible with move in date and chain free.

should I sit tight and wait so I’m not overly keen? I just don’t want them to think because I put in an offer within 3 days that I’m desperate and think they can use this against me.

what should I do in terms of when I should put in a second offer? I told EA that I have other viewings lined up and not ruled it out yet. Told EA I need to think about it.

[Scousefab]

Wow mega surprised they rejected £197k greedy or what! I would carry on looking at other properties. The issue you have is if your mortgage broker decides property isn’t worth that much they won’t give you the mortgage. Go on sold prices on right move and see what other flats have gone for.

[PolaDeVeboise]

I think you went in too high to begin with, Is have started at £193K. However, that's done now. Leave it on the table for a week, then ask EA what they WOULD accept.

[Peridot1]

If you really want it then offer the 200k but tell the EA that that is your final offer and you can’t go higher. They don’t have to counter offer although some people do.

At the end of the day it’s a business transaction so you can’t worry about stuff like seeming desperate. They want to sell and achieve as much as they can. You want to buy and not feel you have paid too much.

[Peridot1]

Yes I would probably have offered 193 or 195 and if they said know that they wanted the 200 I’d have maybe said we could meet in the middle and see what the response was.

[BungleandGeorge]

Just make the offer of what you want to pay. Leave it on the table if they reject they may come back to you. Mortgage valuations are conservative at the moment and if someone has a deposit they can offer over 200k, depends on how desirable the property is? If you’re that keen somebody else might be. Everyone wants to get the maximum price when they sell!

[Summerhillsquare]

Depends on the local market. Some areas near me still hot, others now reducing price. Keep looking for comparisons.

[Birdsongsinging]

Are you in Scotland? I think most folk want home report value as a minimum and more if competition. If no one else is interested I would put in a final take it or leave it offer of 200K.

[BonnieGlasses]

In my limited experience (also a first time buyer) I don't think counter offers are really a big thing in Scotland. So in this situation I think it's up to you to go back with your best and final offer and see what they say. I certainly wouldn't expect them to use a higher offer as a bargaining chip.
I'd also never expect to offer anything under home report valuation so I'm not surprised they've not accepted. I suppose it depends where you are, I'm in Edinburgh so the market is still pretty buoyant and most things as far as I can tell are going for at least a few percent over valuation.

[Mummyoflittledragon]

My area is really hot right now on certain properties. Perhaps they will be tempted by 5/6% over asking.

[Blanketenvy]

It's rubbish isn't it. I'm a ftb. Last week offered on a house that was on for 185. There was an offer of 192. I offered 196 but was rejected for a cash buyer, despite going through providing proof of deposit, MIP etc. Honestly feel like we'll never manage to buy at this rate.

[NewGirl2023]

Thanks for all your responses. I will keep you all up to date the outcome. I’m not sure what I’ll do yet but taking everyone’s input and deciding next steps. Thanks!

[Twiglets1]

I’m surprised too that they didn’t give a counter offer. Maybe because it hadn’t been on for very long they want to wait & see what other offers they get.
I think I would have another conversation with the estate agent. Ask if you can be notified if anyone offers more than you have offered.

[Littlethingsmeanalot]

They are likely looking for over 200. I’d sit tight for a week. Then I’d call the agent and say you can raise to 200 but that’s final. You can’t afford more and see what happens, prepare to walk away

[Birdsongsinging]

If you are in Scotland though you dont want to wait until it goes to a closing date as then it is more likely to go for more.

[DeadSea95]

@Birdsongsinging

If you are in Scotland though you dont want to wait until it goes to a closing date as then it is more likely to go for more.

Scotland:

I paid 11% over (successful) at closing date in April. Only one other bidder.

I'd offered home report value after the first viewing and was rejected. The seller seemed insulted when I mentioned it later at the second viewing - said they were looking for 10% - 20% and in no rush to sell.

I made an offer at closing date (two weeks later) once I knew another buyer had made an offer.

Another flat I bid on in March went for 20% over. Rough area too.